Net Worth Update Nov 2024 | Stagnant at SGD 1.72m

My net worth stagnates at S$1.72 million in November 2024 despite savings from salary, CPF contributions and dividends collected. The gains in S-Reits over the past weeks have been wiped out by the inflationary fears and sustained high interest rate environment arising from Donald Trump's success at the US presidential election

Net Worth Breakdown:

Safe Heavens (62%)

CPF (36%): As the major constituent of my wealth, it is the foundation of my retirement savings. Attaining Full Retirement Sum FRS in 2022 was a significant milestone.

Cash and war chest (16%): My liquid assets are strategically invested in fixed deposits and Fullerton cash funds, earning around 2.8% p.a. This provides a cushion for unexpected expenses while generating steady returns.

Bonds (10%): A balanced portfolio of low-risk Singapore Savings Bonds and Astrea Bond ensures stability. I have maxed out my SSB individual limit of $200k in Aug, right before the yield of SSB falls below 3%.

Retirement Savings (13%)

SRS (8%): This provides an additional layer of retirement savings. Annual individual limit of $15.3k is maxed out.. My SRS funds are currently deployed into $30k of SSB and 6 local stocks - Comfortdelgro, DBS, OCBC, Keppel DC Reit, Keppel Reit and Wilmar.

Insurance (5%): I also own Prudential whole life insurance plan and other savings plans which in total, could provide me with 6-digit lump sum payout after my retirement age.

Income and Growth Assets (24%)

Stocks and Reits (24%): These riskier financial assets are volatile but generates passive income and caters for potential growth, with a focus on long-term compounding growth through dividend investing.

A Balanced Ascent: The Art of Financial Wellness

The pursuit of this financial journey is like a long winding hike. It is a steady climb, filled with challenges and rewards. Just like a hiker, I had to navigate steep inclines, traverse rocky terrains, and endure occasional storms. These challenges have included market volatility, unexpected expenses, and the constant temptation of instant gratification. Yet, with each step, I have grown stronger, more resilient, and more determined.

While reaching the summit of financial freedom is the ultimate goal, it is equally important to appreciate the journey. Just as a seasoned hiker pausing to admire the scenary, breathe in the fresh air, so too should I take time to savour the progress. In the same way, taking a step back from relentless financial pursuit can provide much-needed respite and rejuvenation. I have decided to slow down my pace towards financial freedom by spending more on experiences and bucket list items that could enhance my quality of life and overall happiness.

Ultimately, financial success is not solely about accumulating wealth and growing net worth. It is about achieving a state of financial wellness. By striking a balance between ambition and enjoyment, we can build a life that is both prosperous and fulfilling.

Thank you for reading!

With love & peace,

Qiongster

Why DBS is cheap at $42.40?

 

DBS Bank (SGX: D05), the safest bank in Asia, South East Asia's most profitable bank, has consistently demonstrated exceptional financial performance, navigating global uncertainties and economic challenges with aplomb, underpinned by a robust business model. Named as the world's best bank multiple times over the past decade, DBS achieved a record high quarterly profit of more than SGD 3 billion in Q3 2025, sending its share price rocketing by more than 8% to close at $42.40 this week. 

After hitting all-time high, there is still an intriguing question: Currently, is DBS over, fairly or undervalued, presenting a compelling investment opportunity?

Strong Financial Foundation and Resilience

DBS Bank, a leading financial institution in Southeast Asia, boasts a strong financial foundation that underpins its resilience and growth. The bank maintains a robust capital adequacy ratio, well above regulatory requirements, ensuring its stability and ability to withstand potential shocks. Additionally, DBS has consistently demonstrated exceptional asset quality, with a low non-performing loan (NPL) ratio of 1%, reflecting prudent risk management practices and a high-quality loan portfolio.

The bank's diversified business model, spanning across multiple geographies and product lines, further enhances its resilience. DBS's presence in key Asian markets, including Singapore, Hong Kong, Taiwan, Indonesia, India and China, provides a balanced exposure to diverse economic cycles. This geographic diversification mitigates risks and supports sustainable growth.

Earnings Growth and a Dividend Powerhouse

DBS Bank has a proven track record of delivering consistent and steady earnings growth, driven by its strong market position, disciplined cost management, and strategic investments. The bank's ability to generate sustainable profits positions it favorably for future growth and shareholder returns.

In recent years, DBS has consistently reported strong financial results, driven by its core banking operations, wealth management, and investment banking segments. The bank's focus on digital transformation and regional expansion has further fueled its growth trajectory.

Moreover, DBS has a strong commitment to rewarding its shareholders through regular quarterly dividends. The bank's dividend payout ratio is typically prudent, ensuring a sustainable dividend policy while preserving capital for reinvestment and growth initiatives. This combination of earnings growth and dividend income makes DBS an attractive investment for both income-seeking and growth-oriented investors.

DBS has a history of increasing its dividend payouts over time, reflecting its strong financial performance and commitment to shareholder value. This makes it an attractive investment for those seeking a reliable and growing income stream.

DBS quarterly dividend was raised to 54 cents per share, up from 48 cents per share a year ago, reflecting the bank's commitment to returning value to shareholders while maintaining a healthy payout ratio of less than 55%. Assuming DBS can maintain its $2.16 annual dividends, its yield is easily slightly more than 5% at current price of $42.40, which is rather attractive as yields of lower risk financial instruments are expected to fall in the short-term.

Robust Capital Position

DBS Bank's robust capital position is a cornerstone of its financial strength, ensuring its resilience and ability to weather economic cycles. The bank maintains a strong Common Equity Tier 1 (CET1) ratio of 17.2%, well above regulatory requirements and comparable to global financial institutions. This strong capital base, coupled with a low non-performing loan (NPL) ratio of 1%, reflects effective risk management and sound asset quality.

DBS's proactive approach to capital management ensures that it is not merely hoarding capital but strategically deploying it to drive growth and enhance shareholder value. The bank has announced an SGD 3 billion share buyback programme in the next few years to buy back shares in the open market, cancel them, in a bid to lower their excess capital and increase earnings per share and return on equity, reducing their CET1 ratio by 0.8%.

There were recoveries from the oil and gas provisions that were made some years ago as well as in assets related to the money laundering case in Singapore. DBS also managed to monetise or refinance some Hong Kong and China property assets that were classified as NPL earlier in the year.

This combination of strong capital ratios, effective risk management, and a strategic approach to capital deployment reinforces investor confidence in DBS as a stable and income producing investment machine.

Potential Expansion

DBS is actively exploring strategic expansion opportunities in Malaysia according to numerous sources. DBS’ planned foray into Malaysia comes amid improving economic prospects for the South-east Asian nation, with new infrastructure projects and investments expected to result in a surge in credit growth. DBS is the only Singapore bank without a retail banking presence in Malaysia as counterparts OCBC Bank and UOB both have retail banking operations in Malaysia.

In addition to potential acquisitions of stakes in Malaysian banks, such as Alliance Bank Malaysia and Kuwait Finance House's Malaysian retail banking assets, rumors have emerged about DBS's interest in acquiring NTUC Income Insurance after the failed acquisition by Allianz. While these are merely speculations at this stage, such moves could significantly enhance DBS's presence in the retail banking of neighbouring country, insurance market and provide additional inorganic growth opportunities to strengthen its regional footprint and capitalize on the growing economic opportunities in Southeast Asia.

Fair valuation

As of Q3 2024, DBS's book value per share is reported at S$22.81. With the current share price of S$42.40, this results in a price-to-book (P/B) ratio of about 1.86. This indicates that DBS is trading at a  premium to its book value, which is reflective of strong profitable bank's potential. JP Morgan's P/B ratio is 2.07, Bank of America's P/B ratio is 1.28 while Bank of China's P/B ratio is merely 0.39.

According to Gurufocus, DBS's intrinsic value projected based on future free cash flows is $65.99. According to value investing.io, the intrinsic value is lower at $56.52. By Alphaspread standards, the intrinsic value is slightly lower at $52.58. Simplywall.st generously valuates DBS's fair value at a whopping $80.64!

In terms of target prices, the analysts from brokerages have expressed positive views on DBS's prospects, citing its strong fundamentals, attractive valuation, growth potential and projected a range from $37.30 by CGSI Research, $ 38.50 by Phillips Securities, $43.60 by OCBC Investment, $44,70 by RHB Invest, $46.91 by Maybank Research, to $46.95 by UOB Kay Hian in the next 12 months.

Logically if the dividend yield of DBS is compressed to 4% as more investors shift their cash from declining yields of Fixed Deposit, T-Bill and money market funds into bank equities, the share price of DBS is $54! Personally, I believe there is still headroom for DBS share price to soar higher.

Will I buy more DBS shares at $42.40?

As DBS's growth strategy is predicated on Asia's megatrends, including the rising middle class, growing intra-regional trade, urbanisation, and the rapid adoption of technology that is fuelling new innovations. the bank seeks intermediate trade and capital flows as well as support wealth creation in Asia. The bank is strategically and well positioned for future opportunities in a rapidly evolving financial landscape. Their commitment to enhance shareholder value through share buyback, increasing dividends and potential acquisition of Malaysian banks reflects a pragmatic approach that could yield significant returns in the long run.

Buying DBS shares at $42.40 offers exposure to a well-capitalized bank with strong earnings potential but also aligns with a strategic vision that prioritizes long-term growth and stability in an increasingly competitive market. If I had spare war chest or extra funds lying idle, I would invest half of it to reap the 5% yield while dollar-cost average into DBS over the next few years.

Additionally, several potential catalysts could further drive DBS's stock price in the coming months and years. These catalysts include Donald Trump's looser capital and inflationary policies, continued economic recovery in Asia, favorable regulatory developments, and successful execution of the bank's expansion push.

While no investment is without risk. DBS's strong fundamentals, attractive valuation, and growth prospects make it a compelling investment opportunity. The bank's resilience, diversified business model, and track record of delivering shareholder value position it favorably for long-term success.

I currently own 1,300 shares of DBS in my SGX and SRS account and is keen to increase my investment in DBS. However, my frugal instincts and technical analysis will influence me to be patient, hold out for a healthy retracement and place an order slightly near the 100 days MA support at $37.30 or 200 days MA at $35 instead.

Investors seeking strong income stocks with strong visibility in earnings potential and a history of rewarding shareholders could consider DBS as a potential addition to their portfolios. However, it is essential to conduct thorough due diligence and consider individual risk tolerance before making any investment decisions.

On the back of macroeconomic factors such as economic recession fears, global political landscape uncertainties and interest rate noises, as DBS stock price is the top constituent of Singapore's Straits Times Index, it may be very volatile. At above $42, the margin of safety is much lower compared to if we were to invest in DBS earlier in the past few months to past years when its stock prices hover between $20 to $30. As we have witnessed several times in the past, DBS share price could plunge or tank heavily by more than $2 or 5% a day whenever noise or bad news hit due to macroeconomic factors or global uncertainties, incurring huge losses or even margin calls if our purchases are on margin or borrowed funds.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.

Thank you for reading.

With love & peace,

Qiongster

Test My Luck on T-Bill (BS24122E) using SRS funds

 

After the past 2 unsuccessful bids with T-Bills, I still have more than $25k of idle funds lying in SRS account earning a meagre 0.05% in the current high interest rate environment.

Great opportunity costs incurred from waiting on the sidelines to add investment for local banks such as OCBC or DBS shares into my ultra long-term SRS portfolio.

The share prices of local banks display no sign of weakening in the short-term hence I decided to deploy the idle SRS funds into Treasury Bills.

As the latest tranche of T-Bill will close on 11 Nov 2024, 9pm today, I decided to try my luck to auction for this tranche of T-Bill, a short-term government debt security with 6 months tenor, fully backed by the Singapore government and having an AAA credit rating.

The issue date is on 12 Nov 2024 and maturity date is on 13 May 2025. Results will be out on 7 Nov 2024, 1pm.

There it goes.

There is no admin fee for internet banking applications unlike SSB.

Again, I am trying my luck with a competitive bid of 3.18% p.a. with a pinch of salt as I believe this round of application may have a cutoff below 3%. Thus, I am prepared for a failed application, getting back my funds to continue waiting on the sidelines.

Thanks for reading!

With love & peace,

Qiongster

How I spent my NS $200 credits on LifeSG?

I received my $200 NS credits on the LifeSG app yesterday.

2 years ago, I spent my $100 NS credits by paying off my credit card bill on the AXS e-station website.

I intended to do the same again until I saw social media posts that a better way than en-cashing the credits via Sheng Siong ATM which will incur 20 cents fee, is via topping up the YouTrip account and withdrawing from app back to our bank account at no transaction cost at all.

I quickly decided to take action before YouTrip or the government takes action to nerf such practice which defeats the purpose of stimulating the economy via social benefits.

I quickly launched my YouTrip app to top up $200 and generate a QR code.

I then logged in to LifeSG app via SingPass and uploaded the YouTrip QR code to pay.

The transaction was successful and seamless.

The $200 top up is reflected instantly in my YouTrip app.

I then proceeded to withdraw to my bank via Paynow to my phone number.

The $200 NS credits rest safely in my bank now. The entire process took less than 3 mins.

I decided to top up the Moomoo Fullerton SGD Liquidity Fund to earn 2.8% p.a. yield payable daily.

This is how I utilised my $200 NS credits.

Thank you for reading.

With love & peace,

Qiongster

The Ancient Secret to Wealth

 

Marcus Aurelius, a Roman emperor and Stoic philosopher, penned his personal reflections in a work titled "Meditations." These musings offer profound insights into the nature of life, morality, and the pursuit of happiness. In this article, we will explore Aurelius' thoughts on money, possessions, and the true meaning of wealth, drawing upon specific passages from his Meditations to illustrate his points.

The Impermanence of Material Possessions

Aurelius frequently pondered the fleeting nature of material possessions. He recognized that wealth and possessions are subject to change and loss. In one passage, he writes, "Think of the lives of those who have been most praised, and then consider the circumstances of their deaths. Was there anything remarkable about their possessions?" This reflection reminds us that material wealth is ultimately insignificant compared to the enduring qualities of character and wisdom.

Aurelius also emphasized the importance of detachment from material possessions. He wrote, "Everything is fleeting. Consider the nature of things, their origin, their decay, their eternal change. Consider the elements of which they are composed, and the void from which they came." By understanding the impermanence of all things, we can cultivate a sense of detachment and avoid becoming overly attached to material possessions.

The Pursuit of Inner Peace

Aurelius believed that true happiness and fulfillment are not found in external circumstances or material possessions, but rather in the cultivation of inner peace and virtue. He emphasized the importance of living in harmony with oneself and with the natural world. By focusing on developing his character and cultivating a sense of gratitude, Aurelius sought to find meaning and purpose in life that transcended the pursuit of wealth.

In his Meditations, Aurelius frequently reflected on the power of gratitude. He wrote, "Be grateful for everything, and be constantly aware of all the blessings you have." By cultivating gratitude, we can shift our focus from what we lack to what we have, fostering a sense of contentment and well-being.

The Dangers of Greed and Avarice

Aurelius warned against the dangers of greed and avarice. He observed that the pursuit of wealth can lead to anxiety, envy, and a loss of perspective. In one passage, he writes, "Wealth is not a virtue, but a tool. It can be used for good or for evil." Aurelius urged his readers to use their resources wisely and to avoid becoming enslaved to material possessions.

Aurelius also cautioned against the dangers of envy. He wrote, "Envy is a painful passion, and it is also a sign of weakness. It is a confession that you think others are happier than you." By recognizing the destructive nature of envy, we can cultivate a more positive and compassionate attitude towards others.

Conclusion

Marcus Aurelius' Meditations offer timeless wisdom on the nature of wealth and the pursuit of happiness. By recognizing the impermanence of material possessions, cultivating inner peace, and avoiding the pitfalls of greed and envy, we can find true fulfillment and meaning in life. Aurelius' reflections serve as a powerful reminder that lasting happiness is not found in external circumstances, but rather in the development of character and the pursuit of wisdom.

Thanks for reading.

With love & peace,

Qiongster

Portfolio Update October 2024

Happy Diwali! On the last day of October 2024, time to review my investment portfolios.

With the world grappling with geopolitical tensions, economic uncertainties and as the US presidential election looms, my investment portfolios have experienced some retracement. This serves as a reminder of the risks and volatility associated with investing and the importance of adopting a long-term perspective.

My SGX Income Portfolio value has declined to $386k from $399k because local S-Reits experienced harsh reality checks from their recent results announcement, reflecting the impact from from the past years of high interest rates resulting in higher borrowing costs and erosion of net property income and dividend payouts.

My US/HK Growth Portfolio has also seen a positive performance, rising to US$19k from US$18.8k.

My SRS Ultra Long-Term Portfolio value has stagnated at $183k.

Market Outlook 

The US stock market has continued its upward trajectory in a healthy bull run on the back of looming presidential election and higher certainty of a lower interest rate environment in the coming future. Nonetheless, there will still be immense volatility from the occasional noises and fears attributable to ongoing geopolitical conflicts, and concerns about a potential economic recession. Despite these challenges, I believe that long-term investors should remain calm and focused on our investment objectives.

Investment Strategy 

My investment strategy remains unchanged. I continue to prioritize high-quality income-producing instruments, such as government-backed risk-free bonds, property related assets, and strong profitable growth businesses. I am on the sidelines camping for local banks and US growth tech stocks. By carefully diversifying my portfolio and remaining disciplined, I aim to weather any market storms and achieve my long-term financial goals.

Portfolio Actions

1. Added 2,000 shares of CICT at $2.007 through preferential offer on 2 Oct.

Portfolio Dividends

1. Received $147.50 of dividends from Savings Bonds in SRS on 1 Oct.

2. Received $303.00 of dividends from Savings Bonds on 1 Oct.

3. Received $399.72 of dividends from Capitaland Integrated Commercial Trust on 17 Oct.

SGX Income Portfolio

Portfolio Value = $386k

US/HK Growth Portfolio

Moomoo

US$4.7k

Tiger Broker

US$13.2k

Syfe Trade

US$1.1k

Portfolio Value = US$18.8k

SRS Ultra Long-Term Portfolio

Portfolio Value = S$183k

Thanks for reading.

With love and peace, 

Qiongster

Is OCBC cheap at $15.32?

 

Over the past decades, OCBC Bank (OCBC SGX:O39) has demonstrated remarkable resilience and financial strength, navigating economic challenges with aplomb. Despite its robust performance, the stock's valuation has remained relatively subdued compared to its peers and historical averages. Even after hitting all-time high at above $15.40, there is still an intriguing question: Is OCBC currently over, fairly or undervalued, presenting a compelling investment opportunity?

Fundamental Strength and Resilience

OCBC's strong financial foundation is a cornerstone of its investment appeal. The bank boasts a healthy capital adequacy ratio, well above regulatory requirements, ensuring its stability and ability to absorb potential shocks. Moreover, OCBC has consistently maintained a low non-performing loan (NPL) ratio of 1%, reflecting prudent risk management practices and a high-quality loan portfolio.

The bank's diversified business model, spanning across multiple geographies and product lines, further enhances its resilience. OCBC's presence in key Asian markets, including Singapore, Malaysia, Indonesia, and Greater China, provides a balanced exposure to diverse economic cycles. This geographic diversification mitigates risks and supports sustainable growth.

Earnings Growth and Dividend Prospects

OCBC has a history of delivering consistent and steady earnings growth, driven by its strong market position, disciplined cost management, and strategic investments. The bank's ability to generate sustainable profits positions it favorably for future growth and shareholder returns.

OCBC reported a record net profit of S$3.93 billion for the first half of 2024, marking a 9% increase year-on-year, driven by significant income growth across its banking and wealth management sectors.

Moreover, OCBC has a track record of rewarding shareholders through regular dividends. The bank's dividend payout ratio is typically prudent, ensuring a sustainable dividend policy while preserving capital for reinvestment and growth initiatives. This combination of earnings growth and dividend income makes OCBC an attractive investment for both income-seeking and growth-oriented investors.

The interim dividend was raised by 10% to 44 cents per share, reflecting the bank's commitment to returning value to shareholders while maintaining a healthy payout ratio of 50%. Assuming OCBC can maintain its 88 cents annual dividends, its yield is easily more than 5.5% at current price of $15.32, which is very attractive as yields of lower risk financial instruments fall.

Robust Capital Position

OCBC's robust capital position is a key pillar of its financial strength, highlighted by a Common Equity Tier 1 (CET1) ratio of 15.5%, significantly above regulatory requirements and higher than its peers higher than its peers, such as DBS at 14.7% and UOB at 13.4% as of Q1 FY2024. This strong capital base, along with a total capital adequacy ratio of 17.9% and a low non-performing loan (NPL) ratio of 1%, reflects effective risk management and sound asset quality. Such resilience allows OCBC to absorb potential losses while pursuing strategic growth initiatives, including its recent acquisition of Great Eastern Holdings.

Moreover, OCBC's proactive approach to capital management ensures that it is not merely hoarding capital but strategically deploying it where it can generate the most value. With a solid liquidity coverage ratio and a focus on acquiring stable deposits, OCBC is well-positioned to navigate market challenges and capitalize on emerging opportunities in the financial sector. This combination of strong capital ratios and effective risk management reinforces investor confidence in OCBC as a stable and growth-oriented investment.

Strategic Acquisition of Great Eastern

OCBC has made a significant $1.4 billion bid to take Great Eastern private, acquiring the remaining 11.56% stake it does not already own. This offer, priced at S$25.60 per share, represents a 36.9% premium over the last traded price prior to the announcement. The acquisition aligns with OCBC's long-term strategy to strengthen its wealth management and insurance sectors, which are crucial in a region experiencing rising demand for financial products.

The acquisition is expected to be earnings accretive for OCBC, allowing the bank to optimize its capital and enhance shareholder returns. By consolidating its insurance operations under one umbrella, OCBC can improve operational efficiencies and better serve its customer base through integrated financial solutions.

Unlocked Value

OCBC Bank has strategically cultivated a substantial real estate portfolio, comprising a diverse range of properties, including prime shophouses in Singapore. These properties serve as valuable assets that contribute to the bank's overall financial strength and stability.

OCBC's shophouses are often located in highly desirable and prime areas of Singapore, such as the Central Business District (CBD) and Orchard Road. These prime locations benefit from high foot traffic, strong rental demand, and robust property appreciation potential.

OCBC's real estate portfolio generates a steady stream of rental income, contributing to the bank's recurring revenue and supporting its operations. As property values appreciate over time, OCBC's real estate holdings become more valuable, enhancing the bank's overall financial strength and providing a buffer against potential losses in other areas of its business. OCBC's real estate assets can also serve as collateral for loans and other financial obligations, providing additional security and reducing the bank's risk exposure.

What is important to note is that OCBC Bank, like many financial institutions, records its assets, including many of their real estate portfolio at cost. This means that the initial purchase price or fair value at acquisition is the basis for recording the asset on the bank's balance sheet. This means that their actual asset value is understated conservatively. Should one day OCBC decides to listing their properties as OCBC Reits, the hidden value will be unlocked!

Healthy valuation

As of June 2024, OCBC's book value per share is reported at S$12.66. With the current share price of approximately S$15.30, this results in a price-to-book (P/B) ratio of about 1.2. This indicates that OCBC is trading at a slight premium to its book value, which is typical for established banks that possess strong earnings potential.

According to Gurufocus, OCBC's intrinsic value projected based on future free cash flows is $15.45. According to value investing.io, the intrinsic value is much higher at $19.10. By Alphaspread standards, the intrinsic value is even higher at $20.36. Simplywall.st generously valuates OCBC's fair value at a whopping $39.19, on par with DBS current share price.

In terms of target prices, the analysts from brokerages have expressed positive views on OCBC's prospects, citing its strong fundamentals, attractive valuation, growth potential and projected a range from $14.90 by DBS Research, $15.40 by Maybank Securities, $16.70 by CGSI Research, $17.01 by Maybank Research, to $19.40 by UOB Kay Hian in the next 12 months.

Logically if the dividend yield of OCBC is compressed to 4% as more investors shift their cash from declining Fixed Deposit, T-Bill and money market funds into bank equities, the share price of OCBC is $22! Personally, I believe there is still plenty of headroom for OCBC share price to soar higher.

Will I buy more OCBC shares at $15.32?

As OCBC focuses on sustainable growth rather than short-term dividends, the bank is strategically and well positioned for future opportunities in a rapidly evolving financial landscape. The bank’s commitment to enhancing its wealth management capabilities through the Great Eastern acquisition reflects a forward-thinking approach that could yield significant returns in the long run.

Buying OCBC shares at $15.32 not only offers exposure to a well-capitalized bank with strong earnings potential but also aligns with a strategic vision that prioritizes long-term growth and stability in an increasingly competitive market.

Additionally, several potential catalysts could further drive OCBC's stock price in the coming months and years. These catalysts include continued economic recovery in China, Hong Kong and Asia, favorable regulatory developments, and successful execution of the bank's strategic initiatives.

While no investment is without risk. OCBC's strong fundamentals, attractive valuation, and growth prospects make it a compelling investment opportunity. The bank's resilience, diversified business model, and track record of delivering shareholder value position it favorably for long-term success.

I currently own 5,000 shares of OCBC in my SRS account at a net cost of only $8.32 after lessing off the past dividends collected. As my recent T-Bill applications were unsuccessful, I am seriously contemplating buying more OCBC shares at current prices but my bargain instincts and technical analysis will influence me to place an order slightly near the 100 MA support at $14.80 to slightly below $15 instead.

OCBC will be announcing its Q3 2024 financial results on 8 Nov morning. I think the results will be positive but I hope the results will be below expectation so that their share price will correct for us investors to buy at lower costs.

Investors seeking undervalued stocks with strong growth potential and a history of rewarding shareholders could consider OCBC as a potential addition to their portfolios. However, it is essential to conduct thorough due diligence and consider individual risk tolerance before making any investment decisions.

On the back of macroeconomic factors such as economic recession fears, global political landscape uncertainties and interest rate noises, the share price of OCBC may be very volatile, correct healthily or tank any time as we have witnessed in the past.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.

Thank you for reading.

With love & peace,

Qiongster

Test My Luck on T-Bill (BS24121A) using SRS funds

   

I have more than $25k of idle funds lying in SRS account earning a meagre 0.05% in the current high interest rate environment.

Great opportunity costs incurred from waiting on the sidelines to add investment for local banks such as OCBC or DBS shares into my ultra long-term SRS portfolio.

The share prices of local banks display no sign of weakening in the short-term hence I decided to deploy the idle SRS funds into Treasury Bills.

My previous application of the 1 year T-Bill BY24103N was unsuccessful as my competitive bid of 3.0% falls way short of the cut-off yield of 2.71%.

As the latest tranche of T-Bill will close on 23 Oct 2024, 9pm today, I decided to try my luck to auction for this tranche of T-Bill, a short-term government debt security with 6 months tenor, fully backed by the Singapore government and having an AAA credit rating.

The issue date is on 29 Oct 2024 and maturity date is on 29 Apr 2025. Results will be out on 24 Oct 2024, 1pm.

There it goes.

There is no admin fee for internet banking applications unlike SSB.

Again, I am trying my luck with a competitive bid of 3.08% p.a. with a pinch of salt as I believe this round of application may have a cutoff below 3%. Thus, I am prepared for a failed application, getting back my funds to continue waiting on the sidelines.

Thanks for reading!

With love & peace,

Qiongster

Die with Zero: A Revolutional Philosophy to Financial Planning

 

In the realm of personal finance, the philosophy of "Die With Zero," popularized by Bill Perkins, challenges conventional wisdom about saving and spending. This approach advocates for maximizing life experiences rather than hoarding wealth for the future, suggesting that individuals should aim to exhaust their financial resources by the end of their lives. This article delves into the principles behind this philosophy and how it can reshape your financial planning.

Understanding the Concept

The core idea of "Die With Zero" is simple: life is finite, and the goal should be to enjoy it fully. Perkins argues that many people work tirelessly to accumulate wealth, often at the expense of experiences that could enrich their lives. Instead of saving excessively for retirement or leaving behind a substantial inheritance, Perkins encourages individuals to spend their money on meaningful experiences while they are still healthy and able to enjoy them.

The Importance of Timing

One of the key tenets of this philosophy is timing. Perkins emphasizes that certain experiences are best enjoyed at specific stages of life. For instance, traveling while young and healthy allows for more enjoyment than waiting until retirement when health may decline. By prioritizing experiences over savings, individuals can create lasting memories that contribute to a fulfilling life.

The Survival Threshold

To implement the "Die With Zero" strategy effectively, Perkins introduces the concept of a "survival threshold." This threshold represents the minimum amount of money one needs to live comfortably until death. The formula is as follows:

Survival Threshold = 0.7 × (Annual Living Expenses) × (Years Left to Live)

For example, if you expect to live for 30 more years and your annual expenses are $50,000, your survival threshold would be:

0.7×50,000×30= $1,050,000

This calculation helps individuals determine how much they can afford to spend on experiences without risking financial insecurity.

Prioritizing Experiences Over Inheritance

A significant aspect of the "Die With Zero" philosophy is the idea of giving while living. Perkins suggests that individuals should consider providing financial support to family members or charities during their lifetimes rather than waiting until death. This approach not only allows recipients to benefit from the funds when they need them most but also fosters deeper connections and shared experiences.

However, it is essential to recognize that this philosophy may be more suitable for singles or married couples without offspring. For those without children or dependents, there is less concern about leaving a legacy or inheritance; thus, they can focus entirely on maximizing their life experiences without the pressure of providing for future generations.

Balancing Financial Security and Enjoyment

While the "Die With Zero" philosophy promotes spending on experiences, it does not advocate for reckless financial behavior. It encourages a balanced approach where individuals plan for long-term care and unexpected expenses while still prioritizing enjoyment. Having a solid financial plan in place ensures that you can enjoy life without fear of running out of money.

Real-Life Applications

Implementing the "Die With Zero" philosophy requires careful planning and consideration. Here are some practical steps to get started:

1. Assess Your Financial Situation: Calculate your current net worth, annual expenses, and expected lifespan to determine your survival threshold.

2. Create an Experience Budget: Allocate a portion of your income specifically for experiences—travel, hobbies, or learning new skills—that bring joy and fulfillment.

3. Reevaluate Your Goals: Shift your focus from accumulating wealth to creating memorable moments. Consider what experiences you want to prioritize in different life stages.

4. Engage in Open Conversations: Discuss your financial plans with family members to ensure everyone understands your intentions regarding inheritance and support.

5. Stay Flexible: Life circumstances change; be prepared to adjust your plans as needed while staying committed to enjoying life.

Conclusion

The "Die With Zero" philosophy presents a refreshing perspective on personal finance by urging individuals to prioritize living fully over accumulating wealth unnecessarily. By understanding your survival threshold and focusing on meaningful experiences, you can create a fulfilling life that leaves behind cherished memories rather than unspent money. As Bill Perkins aptly puts it, “You can always make more money, but you can’t make more time.” Embrace this mindset and start living life to its fullest today.

Thanks for reading!

With love & peace,

Qiongster

Test My Luck on T-Bill (BY24103N) using SRS funds

  

I have more than $25k of idle funds lying in SRS account earning a meagre 0.05% in the current high interest rate environment.

Great opportunity costs incurred from waiting on the sidelines to add investment for local banks such as OCBC or DBS shares into my ultra long-term SRS portfolio.

The share prices of local banks display no sign of weakening in the short-term hence I decided to deploy the idle SRS funds into either this latest tranche of Treasury Bills.

As the latest tranche of T-Bill will close on 16 Oct 2024, 9pm today, I decided to try my luck to auction for this tranche of T-Bill, a short-term government debt security with 1 year tenor, fully backed by the Singapore government and having an AAA credit rating.

The issue date is on 22 Oct 2024 and maturity date is on 21 Oct 2025. Results will be out on 17 Oct 2024, 1pm.

There it goes.

There is no admin fee for internet banking applications unlike SSB.

Frankly, I am trying my luck with a competitive bid of 3% p.a. with not much confidence in getting it as I believe this round of application may have a cutoff below 3% and there may still be many low-ballers using CPF OA funds. Thus, I am prepared for a failed application, getting back my funds to continue waiting on the sidelines.

Thanks for reading!

With love & peace,

Qiongster

Net Worth Update October 2024 | SGD1.72m Record High!

  

Net worth reaches a new all-time high of S$1.72 million in October 2024, driven by the rebound of S-Reits, consistent CPF contributions, and disciplined savings habits.

Net Worth Breakdown:

Safe Heavens (62%)

CPF (36%): Forming the bedrock of my retirement savings, attaining Full Retirement Sum FRS in 2022 was a significant achievement.

Cash and war chest (16%): My liquid assets are strategically invested in fixed deposits and Fullerton cash funds, earning around 3% p.a. This provides a cushion for unexpected expenses while generating steady returns.

Bonds (10%): A balanced portfolio of low-risk Singapore Savings Bonds and Astrea Bond ensures stability. I have maxed out my SSB individual limit of $200k in Aug, right before the yield of SSB falls below 3%.

Retirement Savings (13%)

SRS (8%): I have already contributed the annual individual limit of $15.3k, solidifying my retirement savings. My SRS funds are deployed into $30k of SSB and 6 local stocks - Comfortdelgro, DBS, OCBC, Keppel DC Reit, Keppel Reit and Wilmar.

Insurance (5%): I also own Prudential Pru-life multiplier whole life insurance plan and other savings plans which in total, could provide me with 6-digit lump sum payout after my retirement age.

Income and Growth Assets (25%)

Stocks and Reits (25%): This riskier portion of my portfolio caters for generation of passive cashflows and potential growth, with a focus on long-term compounding growth through dividend investing.

Achieving a net worth of S$1.7 million before year-end is a testament to the power of consistent financial discipline. Diversification, strategic investing, and compounding growth have been instrumental in building a robust financial foundation. The ongoing contributions to CPF and the strong performance of my investments have been key drivers of this progress. As I continue my journey towards long-term financial freedom, I remain committed to maximizing returns while managing risks.

Thank you for reading!

With love & peace,

Qiongster

Portfolio Update September 2024

Before we end off September 2024, let me quickly take a snapshot of my investment portfolios. 

Despite the ongoing geopolitical tensions and economic uncertainties in the world, my overall portfolio value has continued to grow, reflecting the resilience of my long-term investment strategy.

My SGX Income Portfolio value has seen a steady increase to $399k from $384k driven by the recovery of local S-Reits benefiting from the interest rate cuts starting from Sep 2024.

My US/HK Growth Portfolio has also seen a positive performance, rising to US$18.8k from US$17.8k.

My SRS Ultra Long-Term Portfolio value has experienced a modest uptick to $183k from $182k.

Market Outlook 

The US stock market has continued its upward trajectory in a healthy bull run on the back of looming presidential election and higher certainty of a lower interest rate environment in the coming future. Nonetheless, there will still be immense volatility from the occasional noises and fears attributable to ongoing geopolitical conflicts, and concerns about a potential economic recession. Despite these challenges, I believe that long-term investors should remain calm and focused on our investment objectives.

Investment Strategy 

My investment strategy remains unchanged. I continue to prioritize high-quality income-producing instruments, such as government-backed risk-free bonds, property related assets, and strong profitable growth businesses. By carefully diversifying my portfolio and remaining disciplined, I aim to weather any market storms and achieve my long-term financial goals.

Portfolio Actions

1. Sold 2,000 shares of PLife Reit at $3.93 in SRS on 9 Sep.

Portfolio Dividends

1. Received $138 of dividends from Savings Bonds in SRS on 2 Sep.

2. Received $299.55 of dividends from Savings Bonds on 2 Sep.

3. Received $752.40 of dividends from Capitaland Ascendas Reit on 2 Sep.

4. Received $418 of dividends from MPACT in SRS on 12 Sep.

5. Received $515.36 of dividends from Mapletree Industrial Trust as 231 shares via DRP on 12 Sep.

6. Received $289.83 of dividends from Keppel Reit in SRS on 13 Sep

7. Received $438.66 of dividends from Mapletree Logistics Trust as 431 shares via DRP on 18 Sep.

8. Received $363.92 of dividends from Keppel DC Reit in SRS on 23 Sep

9. Received $794.50 of dividends from Aims Apac Reit on 25 Sep

10. Received $321.68 of dividends from Capitaland China Trust on 25 Sep

11. Received $1,004.87 of dividends from CICT on 26 Sep

12. Received $42 of dividends from OUE on 26 Sep

SGX Income Portfolio

Portfolio Value = $399k

US/HK Growth Portfolio

Moomoo

US$4.5k

Tiger Broker

US$13.2k

Syfe Trade

US$1.1k

Portfolio Value = US$18.8k

SRS Ultra Long-Term Portfolio

Portfolio Value = S$183k

Thanks for reading.

With love and peace, 

Qiongster

Passive Income in Q3 and 9 months of 2024

 

Sep 2024 is ending soon and here is an update on my passive income for 3Q and the first 9 months of 2024.

From 1 Jul to 30 Sep 2024, I collected the following dividends.

$147.50 SSB (1 Jul) SRS

$320.73 SSB (1 Jul)

$239.88 Far East Orchard as 239 shares DRP (5 Jul)

$128.70 SSB (1 Aug)

$2,200.00 OCBC (23 Aug) SRS

$880.00 UOB (23 Aug)

$540.54 DBS (26 Aug)

$162.00 DBS (26 Aug) SRS

$303.97 IREIT (28 Aug)

$254.70 Ascott Reit (29 Aug)

$76.55 Suntec Reit (29 Aug)

$176.00 Comfortdelgro (29 Aug) SRS

$90.00 Wilmar (29 Aug) SRS

$150.80 Plife Reit (30 Aug) SRS

$138.00 SSB (2 Sep) SRS

$150.50 SSB (2 Sep)

$149.05 SSB (2 Sep)

$752.40 Ascendas Reit (2 Sep)

$418.00 MPACT (12 Sep)

$515.35 Mapletree Ind Trust (12 Sep) DRP

$289.83 Keppel Reit (13 Sep) SRS

$438.66 Mapletree Log Trust (18 Sep) DRP

$363.92 Keppel DC Reit (23 Sep) SRS

$794.50 Aims Apac Reit (25 Sep)

$321.68 Capitaland China Trust (25 Sep)

$1,004.87 CICT (26 Sep)

$42.00 OUE (26 Sep)

The total amount collected in Q3 2024 is $11,050.13, a 32% YoY increase from Q3 2023's $8,375.53.

Together with the $13,466.19 passive income in the first half of 2024, my passive income in the first 9 months of 2024 is

$24,516.32

On track of achieving my revised target of $28k passive income for 2024.

Time in the market beats timing the market. In the long-term, I am happy to remain primarily invested locally in SGX for passive income, while having a little exposure to US tech stocks for some growth. I may sell of my existing small holdings of HK shares after their recent resurgence.

My ultimate goal is to own an investment portfolio valued at one million dollars yielding at least $50k of passive income annually. Currently, I am at about half of the journey as my SGX income portfolio and SRS ultra long-term portfolios are valued at around $500K and dividends are projected to be around $25k or more for this year.

My motto is to live frugally, save up, invest in any bear or bull market conditions, slowly and steadily build up my investments in stocks, Reits and risk-free government bonds.

I look forward to collecting more dividends as passive income in the last quarter of 2024.

Thanks for reading. Stay focused and remain steadfast as always! Huat ah!

With love and peace, 

Qiongster

The Illusion of Life: A Rat Race to Nowhere

 

I have been pondering about life, a tapestry woven with threads of joy, sorrow, and the relentless pursuit of meaning. We are often caught in a whirlwind of activities, chasing after the next big thing, yet feeling a profound sense of emptiness. What truly matters? Is life merely a rat race, a relentless struggle for survival and dominance?

The Illusion of Happiness

We are bombarded with messages that equate happiness with material possessions, fame, and success. We strive to gain more wealth and assets, excel at work to gain promotions, chase after the latest gadgets, compete to win in sports, fight to gain control of land and immerse ourselves in a world of superficial distractions. Yet, beneath the surface, a sense of discontent lingers. The pursuit of happiness often leads to a never-ending cycle of desire and dissatisfaction.

The Rat Race of Consumerism: People often feel compelled to keep up with the latest trends and possessions, believing that these will bring them happiness. Look at the queues in front of Apple stores to be the first to get hold of the latest iPhone 16. Months later, the queue will be for Samsung Galaxy 25 phones. Next year, it will be the same for iPhone 17. However, this can lead to a never-ending cycle of consumption and dissatisfaction.

The Illusion of Social Media: Social media platforms often present an idealized version of reality, leading our brains to compare ourselves to unrealistic standards and experience feelings of inadequacy. The curated nature of these platforms creates a false perception of perfection, contributing to unrealistic beauty standards and a fear of missing out. This can erode self-esteem, body image, and overall well-being. To avoid falling into the comparison trap, it is important to remember that social media is often a highlight reel and to focus on building a strong sense of self-worth.

The Survival of the Fittest

The concept of "survival of the fittest" has permeated our society. We're taught to compete, to outshine others, and to strive for dominance. From the corporate world to the sports arena, we're constantly vying for the top spot. However, this relentless competition often comes at a cost. It can lead to stress, anxiety, and a loss of connection with oneself and others.

The Competitive Corporate Culture: Many workplaces foster a highly competitive environment, where employees are constantly striving to outperform their colleagues. This can lead to a toxic work culture and a lack of work-life balance. Despite the benefits of remote work, which has become the norm since the pandemic, many companies are gradually abandoning this flexibility and autonomy, harkening back to traditional workplace models. Corporate giants like Amazon, Tesla, IBM, and Meta, driven by profit, often prioritize leveraging their human resources for business growth and WFH is being perceived as a sign of unproductivity by their shrewd business leaders. In today's capitalist society, physical presence and visible productivity, often manifested in office showboating, remain key performance indicators that make management feel good about their subordinates' work.

The Pressure to Succeed in Academia: Students are often pressured to achieve high grades and get into prestigious universities, which can lead to excessive stress and anxiety. In Singapore, the pressure to attend prestigious schools start from a young age, from attending branded infant school, kindergardens to prestigious primary schools, secondary schools and so on. All these toiling come to nothing because schools rarely impart entrepreneurial skills nor money making abilities to students as teachers are wage slaves trained to educate the next generation of slavers for the modern corporate world. 

The Intense Competition in Sports: The world of sports is often characterized by fierce competition, where athletes strive to be the best in their field. The competition attracts viewership and indirectly brings revenue and profits for the organisers or sponsors. Look at Formula 1, why do 20 driver drive 60 over laps for the past 15 years on Singapore's track? It is all about money from entertainment. Likewise, the same goes for soccer leagues, baseball and cricket leagues, racquet sports and recent Olympics and so on.

The Fear of Death

The fear of death is a universal human experience. It drives our actions, our desires, and our anxieties. We cling to life, desperately trying to avoid the inevitable. Yet, this fear can also limit our ability to live fully. It can prevent us from taking risks, embracing change, and experiencing the beauty of life.

The Fear of Failure: People often avoid taking risks or pursuing their dreams due to the fear of failure and the potential consequences.

The Desire for Immortality: Some people seek to achieve immortality through fame, wealth, or scientific advancements, driven by the fear of death.

The Impact of War: War can have a profound impact on people's lives, instilling fear, uncertainty, and a sense of mortality. The tragic loss of life in conflicts around the world serves as a constant reminder of our own mortality.

The Illusion of Control

We often believe that we have control over our lives. We make plans, set goals, and strive to shape our destiny. However, life is unpredictable. Unexpected events can derail our plans and shatter our illusions of control. It's important to embrace uncertainty and learn to adapt to change.

The Impact of Natural Disasters: Natural disasters can disrupt people's lives and challenge their sense of control. Look at the recent typhoons, hurricanes and earthquakes which bring damages to infrastructure and flooding in several Asian cities.

The Unexpected Loss of a Loved One: The death of a loved one can significantly alter a person's life and their perception of control. It can disrupt one's routine and raise existential questions on the fragility of life. The inability to prevent or reverse the loss can invoke feelings of helplessness and powerlessness.

The Uncertainty of the Future: The world is constantly changing, and it is impossible to predict what will happen next. This uncertainty can be both exciting and daunting.

Conclusion

Life is a complex and multifaceted experiential journey. It can be filled with both joy and sorrow, triumph and defeat. While we may strive for happiness, success, and control, we must also recognize the limitations of these pursuits. Ultimately, the meaning of life is a personal journey that each of us must discover for ourselves. By letting go of fear, embracing uncertainty, and connecting with our inner selves, we can find true fulfillment and meaning in our lives. Remember that we all will die one day so we should live our lives to the maximum without thinking about the meaning of lives.

Thank you all for reading!

With love and peace, 

Qiongster

Subscribed to CICT Preferential Offer Shares

 

The preferential offering by Capitaland Integrated Commercial Trust (CICT) to raise proceeds of around $757 million to fund the acquisition of 50% stake in Ion Orchard is ongoing and will close on 24 Sep 2024 9.30pm by ATM or earlier at 5.30pm by other means.

CICT is offering around 377 million shares to existing shareholders at a ratio of 56 preferential offer shares for every 1,000 existing shares at a price of $2.007.

The sponsor of the Reit, Capitaland Investment has irrevocably undertaken to subscribe their entitled preferential shares in full.

I find no compelling reason to not increase my investment in CICT which established itself as a pioneer in the retail Reit space before merging with Capitaland Commercial Trust in 2020, offering retail investors like us the unique opportunity to owning slices of Singapore's most iconic shopping malls including the likes of Raffles City, Westgate, Funan and top quality grade A commercial skyscrapers in the CBD such as CapitaGreen, Asia Square Tower 2, Capita Sky, and some other high quality commercial properties overseas such as Main Airport Centre in Frankfurt, Germany and 100 Arthur Street in Sydney, Australia. These diverse property types generate stable income streams over the years, making CICT a cornerstone in my income portfolio.

The acquisition of Ion Orchard further solidifes CICT's position as a leading Reit in Singapore. This prime shopping mall portfolio is a highly sought after destination for both locals and tourists contributing significantly to the Reit's income stream and asset under management.

As I own 18,506 shares of CICT, I am entitled to 1,036 preferential offer shares at $2.007.

As this is a slightly yield accretive fund raising project and at a yield of more than 5%, I intend to subscribe to 2,000 preferential offer shares, including excess and hope to get all if possible.

I decided to use the ATM to subscribe for the Preferential Offer Shares as using Paynow on CDP portal would also incur $2 transaction fee.

There it goes.

My investment in CICT is positioned for the long-term, at least the next decade, for passive income.

While the acquisition of Ion Orchard may primarily benefit CICT's sponsor, Capitaland Investment, the timing of the deal appears strategic. It coincides with a potential interest rate pivot and a stabilization of CICT's share price near its book value of $2.12.

Despite this positive backdrop, short-term market volatility remains a concern. CICT's share price could still be influenced by interest rate fluctuations and global economic news. However, I believe that the REIT's long-term prospects remain solid, supported by its diversified portfolio and proven track record.

If CICT's share price dips below $2 in the future, I am prepared to increase my holdings, as I view this as a potential buying opportunity. This confidence stems from my belief in the REIT's ability to navigate challenges and generate sustainable returns.

In the coming months, years and decade, I look forward to collecting more dividends from CICT perpetually effortlessly.

Thank you all for reading!

With love and peace, 

Qiongster